The US dollar has been sliding against the Kyat in the local currency market, with the exchange rate touching a low of K1,533 per dollar yesterday, a decline of K9 from 2 January, said money exchangers.
In October last year, the dollar exchange rate hit a high of K1,600. Thereafter, the dollar has been falling in the local currency market.
“It is normal for the dollar to depreciate against the Kyat during this time of the year. The dollar rate is likely to remain cool and it seems it may not climb up,” said Dr. Soe Tun, a money exchanger.
The Central Bank of Myanmar (CBM) bought over US$11 million from private banks over three days in late 2018 (24, 26, and 27 December) when the dollar exchange rate was around K1,540-1,560 in the local currency market. The CBM again bought $5 million from private banks at its set rate on 3 January.
“It is good that the CBM buys and holds dollars. It would be better if the CBM could directly buy dollar from exporters,” said Dr. Soe Tun.
The CBM set the exchange rate at K1,537 per dollar on 9 January.
In the second half of 2018, the minimum and maximum exchange rates were K1,345-1,407 in June, K1,384-1,443 in July, K1,442-1,570 in August, K1,538-1,650 in September, K1,515-1,600 in October, K1,565-1,595 in November, and K1,510-1,577 in December.
By Nyein Nyein
(Translated by Ei Myat Mon)